TMI BlogLevy of Krishi Kalyan CessX X X X Extracts X X X X X X X X Extracts X X X X ..... (Section-161) of the Finance Act 2016. The said Chapter-VI of the Finance Act, 2016 is reproduced below:- CHAPTER VI KRISHI KALYAN CESS 161. (1) This Chapter shall come into force on the 1st day of June, 2016. (2) There shall be levied and collected in accordance with the provisions of this Chapter, a cess to be called the Krishi Kalyan Cess, as service tax on allor any of the taxable services at the rate of 0.5 per cent. on the value of suchservices for the purposes of financing and promoting initiatives to improve agriculture or for any other purpose relating thereto. (3) The Krishi Kalyan Cess leviable under sub-section (2) shall be in addition to any cess or service tax leviabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eviable thereon which are either exempt from the whole of service tax by a notification or special order issued under sub-section (1) or as the case may be under sub-section (2) of section 93 ofthe Finance Act, 1994 or otherwise not leviable to service tax under section 66B of the Finance Act, 1994: Provided that Krishi Kalyan Cess shall be leviable only on that percentage of taxable value which is specified in column (3) for the specified taxable services in column (2) of the Table in the notification No.26/2012-Service Tax, dated 20th June, 2012, published in the Gazette of India, Extraordinary, Part Il, Section 3, sub-section (i) vide number G.S.R. 468 (E), dated the 20th June, 2012. The CBEC vide the said Notificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e shall be allowed to take CENVAT credit of the Krishi Kalyan Cess on taxable services leviable under section 161 of the Finance Act, 2016 (28 of 2016); (b) Cenvat credit of any duty specified in sub-rule (1) of Rule-3 of CENVAT Credit Rules shall not be utilised for payment of KrishiKalyan Cess leviable under section 161 of the Finance Act, 2016 (28 of 2016) (c) Cenvat credit in respect of Krishi Kalyan Cess on taxable services leviable under section 161 of the Finance Act, 2016 (28 of 2016) shall be utilised only towards payment of Krishi Kalyan Cess on taxable services leviable under section 161 of the Finance Act, 2016 (28 of 2016) For details, the said Notification No.28/2016-Central Excise (N.T.) dated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 8. Rebate of Krishi Kalyan Cess : The CBEC vide Notification No.29/2016Service Tax dated 26.05.2016 has made provisions for allowing rebate of Service Tax used in providing taxable services which are exported. This comes into effect from 01.04.2016. For full details, the said Notification No.29/2016-Service Tax dated 26.05.2016 maybe referred to 9. Refund of Krishi Kalyan Cess for developer of SEZ or a unit in SEZ: Notification No.30/2016-Service Tax dated 26.05.2016 may be referred to. 10. All the Trade Associations/Chamber of Commerce/Members of RAC are requested to bring the contents of this Trade Notice to the notice of their member constituents. sd/- (Viney Kumar Paul) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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